The Godfrey Hirst offer is 85% above Bremworth’s latest closing share price of 62c. Pictured is Bremworth's Napier plant, where wool is spun before being turned into carpet.
The Godfrey Hirst offer is 85% above Bremworth’s latest closing share price of 62c. Pictured is Bremworth's Napier plant, where wool is spun before being turned into carpet.
Bremworth has struck a deal for the owner of its rival, Godfrey Hirst, to acquire it.
The NZX-listed carpet and rug manufacturer has entered into a scheme implementation agreement with Mohawk Industries through its premium hard flooring business Floorscape.
Under the deal, shareholders could receive between $1.05 and $1.15per share, subject to market conditions and business performance. The deal will also need New Zealand Commerce Commission clearance.
Bremworth’s shares closed at 62c on Wednesday, giving it a market capitalisation of $43.7 million.
In February, under its previous board, chaired by George Adams, Bremworth called in investment bankers to undertake a strategic review of its ownership structure after being tapped by potential parties. The review was carried on by Bremworth’s new board, now chaired by Rob Hewett.
